CANADA FX DEBT-Loonie sticks to narrow range ahead of Fed rate decision

    * Canadian dollar trades near flat against the greenback
    * Canada's third-quarter industrial capacity use falls to
    * Price of U.S. oil decreases by 0.3%
    * Canadian bond prices trade mixed across the yield curve

    TORONTO, Dec 11 (Reuters) - The Canadian dollar was little
changed against its U.S. counterpart on Wednesday, trading in a
narrow range as domestic data showed a drop in industrial
capacity utilization and an interest rate decision loomed by the
U.S. Federal Reserve.
    The Fed is expected later today to stick to its plan not to
cut interest rates further in the near future, so most of the
focus will be on the central bank's outlook for next year and
    Canadian industries ran at 81.7% of capacity in the third
quarter of 2019, down from 83.3% in the second quarter,
Statistics Canada said. Economists had forecast a rate of 82.1%.
    The result was weaker than anticipated but not "shocking"
after the economy slowed in the third quarter, analysts at
Action Economic said.
    Last week, the Bank of Canada said that Canada's economy is
operating close to potential as the central bank left its
benchmark interest rate unchanged at 1.75%.
    Bank of Canada Governor Stephen Poloz is due to speak on
Thursday for the first since the bank said he would step down
when his seven-year mandate expires in June.             
    At 9:05 a.m. (1405 GMT), the Canadian dollar          was
trading nearly unchanged at 1.3230 to the greenback, or 75.59
U.S. cents. The currency traded in a range of 1.3228 to 1.3239.
    U.S. crude oil futures        fell 0.30% to $59.06 a barrel
after industry data showed an unexpected build-up of U.S. crude
inventories and as investors waited to see if a fresh round of
U.S. tariffs on Chinese goods would come into force on Sunday.
    Oil is one of Canada's major exports. About 75% of Canada's
exports go to the United States.    
    On Tuesday, top officials from Canada, Mexico and the United
States signed a fresh overhaul of a quarter-century-old trade
pact that aims to improve enforcement of worker rights and hold
down prices for biologic drugs by eliminating a patent
    Canadian government bond prices were mixed across the yield
curve on Wednesday, with the two-year            down 0.5
Canadian cent to yield 1.672% and the 10-year             flat
to yield 1.600%.

 (Reporting by Fergal Smith; Editing by Steve Orlofsky)